tv Best of Bloomberg West Bloomberg June 26, 2016 6:00pm-7:01pm EDT
currency has been trading for about three hours. stocks have just opened in new zealand and exchanges in japan will follow in a few hours. we expect to hear from christine lagarde, managing director of the imf. you're watching special coverage of the brexit aftermath from new york city. i am erik schatzker. here is what is ahead. britain's two main political parties are in turmoil following the unexpected vote to exit the eu. we will tell you what it means for the next prime minister. spanish voters went to the polls in an unprecedented repeat election. the president got the support she needs to break the political chaos. mark cuban, the outspoken billionaire businessman has an opinion on almost everything and you will find out what he has to say about brexit. we bring you the latest
headlines on bloomberg's first word. : secretary of state john kerry will join european leaders in brussels and london tomorrow to discuss a smooth and visible transition for the u.k. from the eu. secretary kerry spoke to reporters today in rome after meeting with italy's foreign minister. >> the most important thing is that all of us as leaders work provide as much continuity, as much stability, as much certainty as possible in order for the marketplace to understand that there are ways to minimize disruption, there are ways to smartly move ahead. market: he will emphasize u.s. support for both the you -- the eu and the united kingdom. u.s. reaction to brexit continue today. mark mcconnell -- mitch mcconnell said the u.k. people got fed up with being dictated
to. >> you can read about the frustration. you see the same thing here. rampagehad a regulatory over the last six years. marco: the republican hedged on whether he thought donald trump kuala -- was qualified for the american presidency. after the british vote to exit the eu, officials within the block want them out as soon as possible. the european parliament president said they should file to leave on tuesday with others repeatedly pressing the brits to move quickly. 3 million people in the u.k. has buyer -- have buyer's remorse. they have signed a petition to parliament asking for a second referendum. the british government said during the campaign, there would not be a second vote.
news, 24 hours a day, powered by more than 2600 in more than 120 countries. i am mark crumpton. erik: the uk's labour party is imploding. --members of later leaders jeremy corbyn's party have resigned. scotland is calling for a second referendum on independence. you our, let us bring correspondent in london. it is a political crisis. it is chaos. you have a prime minister that has stepped down and no clear successor. you have an opposition labor party with 11 resignations. one firing. and calls for the labor leader, jeremy corbyn to step down. what this means is that with an opposition in terminal -- in
turmoil, they will need to be at the table when the u.k. negotiates its departure from the european union. also, the fact that we have a lack of clarity in u.k. politics puts the u.k. in a weak negotiating position with the rest of the eu as well. matter,complicating the is we have nicola sturgeon, the first minister for scotland ramping up plans for a second referendum on scottish independence. we've had some headlines from a poll saying that 44.7% of scots do not want a second independence vote but that is still a big question. one of the big unknowns among many unknowns that are still remaing. erik: is anything becoming clearer as to who may succeed jeremy corbyn if you were to be somehow voted out or pushed out as labour leader?
is there any clarity about who may step in to fill david cameron's shoes? there has been a surprising lack of information and lack of leadership over the weekend. we have not seen anything from anyone. nejra: but we have not seen from anyone is any clear outline of where exactly the u.k. goes from here. believe campaign for starters, 52% of the u.k. voted to leave the eu have not come out with a plan to say how this will happen. in terms of clarity on who could succeed david cameron, the campaign is underway. possibilities are boris johnson, reza may, the problem is though itt the eu does not know who will be negotiating with. in terms of where the eu stance on this, after the initial hard-line stance on saturday
where we had eu leaders calling for a speedy exit for the u.k., that seems to have softened a little bit because german chancellor angela merkel urged a timeout saying that the u.k. to consider the applications. we are seeing a softer stance. all of thel have is eu countries meeting on tuesday in brussels. that will include david cameron. what we are hearing is that other eu leaders are --erstanding that cameron they are not expecting david cameron to trigger article 51. that would mean he would trigger the negotiations. they will expect some kind of clarity, some kind of timeline, and so are investors. investors are waiting to hear exactly the mechanics of how this will play out in terms of
the u.k. exiting the eu. meanwhile, you have a petition that has been signed by more than 3 million people in the u.k. calling for a second referendum. whether this could happen or not is unclear at the moment. all it would mean is that parliament might discuss that option. as you can see, so much reaction, so much lack of clarity. that is why we are seeing sterling extend its fall off. erik: what might nicholas sturgeon do in scotland to stop the u.k. from leaving the eu? we are hearing, further complicating the matter, is that nicola sturgeon has adjusted scotland could block a brexit because the necessary legislation might have to be a approved in its parliament in edinburgh. it is worth pointing out that this entire referendum is not legally binding. parliament does not have to
follow it legally. that is another thing that is being talked about a lot in the u.k. papers. at the moment, it does look like it will happen. it is just a question of exactly how. erik: thank you very much. from london, we take you to spain where the result of the elections today are just coming in. this is a country that has not had a functioning government since last december's indecisive vote. it does appear that the caretaker prime minister and his people's party has made gains. there are celebrations taking place in madrid. fill us in on the latest, please. done way they have better than the opinion polls and the exit polls seem to suggest. as soon as voting ended at 8:00 p.m. local time. the polls suggested that
anti-astaire and the, anti-establishment party had done better than the opinion polls had suggested and could form aally go ahead and left-wing government. that turned out to be wrong. in fact, the people's party has won more seats than in the inconclusive vote in december. it still does not have enough to rule by itself or rule a majority government with another party. but, they are certainly in a better position than they were in december. erik: a little bit of limbo. is it fair to look at the spanish vote as the first test since the brexit of the european political establishment? reporter: i suppose it is the next step that could still lead to more volatility and more shredded nerves among traders on monday.g resumes
to some voters. affect people's minds when they were casting their votes in spain today. erik: what does the winner do because he does not have enough to form a majority. is it more of the same? is the fact that he picked up some support -- does it mean he can break the political gridlock? reporter: it depends on how the numbers stack up. to have a majority government, you have to have 176 seats. that is one possibility you could get a minority government with the people's party. --ibly together with cu ciudadanos.
possibly along with the socialist. if they cannot do that, and if the leftists do not have enough seats to get a government together with the regional parties, then we could find ourselves going towards a third election. spaniards or the the leaders would relish that and certainly not the market. erik: it just means that spain's economic problems continue without a firm grasp on leadership. 20% unemployment. second biggest budget deficit in the eurozone. one of the fastest-growing countries in the eurozone. growth this 3% year. unemployment did come down from 26% to 20%. still shockingly high but the leader, persuading people to vote for him, said things are
going in the right direction. is growing again. stick with me for a steady pair of hands. perhaps, that argument found posture among some spaniards and that is why the seats he won were higher than in december. erik: thank you very much. let us take you to colorado now where imf antigen director christine lagarde is speaking at the aspen festival. they are discussing the future of europe. >> these countries will leave. so on and so forth. the markets were down on friday. my first question to you my friend is, is brexit a catastrophe or an opportunity, or both? christine lagarde: thank you so much, jane, were this easy one. [laughter]
on thank you very much behalf of my husband and myself i would like to thank the aspen community. we have been here for less than 48 hours and we have only met lovely, warmhearted, welcoming people as well as jane and my friends. thank you so much. it feels so good to be here. [applause] what i thought i would do is start with a few numbers and put things in perspective. there is a lot of either short memories or a rush to some conclusions which i do not think is the wisest thing to do at the moment. looking at numbers a little bit. we have to keep in mind that the european union which started yearsconstructed over 50 ago, it represents roughly 500
million people and is the largest free market economics known in the world. that is what the u.k. is considering at the moment. the u.k. itself is a country with over 60 million people, a 45,000,capita at around a pretty good track record of economic policy in the last few years with unemployment down at about 5%. 21.9 andnging from 2.2 finances that have been largely reestablished and in a good direction in terms of gdp. situatione economic of that country at the moment. i am saying that with particular purpose which will be as you will understand the questions that i have at the end of my quick look around. second set of facts which i
think are important is that on friday, as we all woke up to this news which was heartbreaking for those of us who are truly europeans and certainly it was very much my sentiment as a european. but when we woke up we realized that first of all, the markets had vastly underestimated the outcome and contrary to what i hear all the time from my teams, which is essentially that markets usually get it pretty right and anticipate pretty well, on this particular occasion, that was not anticipated very much. which will explain something i will say in a minute. that is point number one. point number two, it might just be the case that the experts, much criticized, including by the justice minister, they just
might be right. is not necessarily going to be the best news in the world. friday, during the course of the day, there was no panic. right? despite the fact that markets had not anticipated that vote, and therefore had priced in asset values and other currency values, the fact that the u.k. would probably remain which led to a nice increase on the markets in the days preceding the referendum, but despite that, there was no panic. there was a violent, brutal, immediate massive move. the pound went down by 10%. caught up a little bit later in the day. went down in many corners and some people lost a made a loty, others
which is often the case when there is massive volatility. but there was no panic and the central bankers did the job that they were prepared to do just in case which was to put a lot of liquidity on the market so there would not be a shortage of no fading away of liquidity's as we saw it on previous occasions, particularly in 2008. that is the first take. central bankers did their job. all groupings, organizations, policymakers came out publicly along the same lines of trying -- thature the situate the situation was under control. and it was under control. we did not see a panic move. having said that, clearly, what we are facing in terms of -- and i am coming to your question, risk and opportunities, or threats opportunities, it needs to be distinguished in
short-term and longer-term. forecastone a lot of as have many other institutions. our conclusions which i have shared with reddish public opinion, not too much success, was th the outcome would not be a very happy story for the british people. both in terms of trade declining, in terms of productivity, probably declining, in terms of income, inflation, and so on. but very much of that outcome preciselyot terribly, predictable is going to depend on the level of certainty or uncertainty. riddick debility or lack of predictive ability. modee are in a risk off are considering that the situation is going to settle back or not. i think that at this point in time, policymakers in the u.k. thatn europe are holding
level of uncertainty in their hands. how they come out in the next few days is going to drive the direction in which risk will go. now, we are hearing at the moment, and i am not inventing it, different statements going a little bit in many directions. there is uncertainty in the political party situation in the u.k. both in the labor and in the conservative party. there is a timetable that has been announced under which the referendum which was legally of an advisory value, is leading to the resignation of the prime minister which will only be effective at the time when he is replaced by his successor who will be appointed by the conservative meeting which will take place probably after the holiday which will be in the course of september.
early in october, we will know who the next leader of the conservative party will be. in the meantime, prime minister cameron has indicated that he 50 ofot trigger article the european treaty which provides the terms under which withdrawal can be organized. there has been no withdrawal from the european union except left30 years ago which from denmark, literally. there is no precedent. or is no real history of how these things happen. imf,our perspective as the we have strongly encouraged and we will continue to encourage the parties involved to proceed with this transition in the most efficient, predictable way in order to reduce the level of uncertainty which will itself determine the level of risk we are facing.
having said that, in the long term, if the decision was maintained, and if the leave is effectively followed through by a withdrawal from the united kingdom, there is no doubt that it will have an economic impact on that economy and it will also have an economic impact on growth in the european union. policymakers are going to be in high demand to calm in the most cohesive, concerted, and hopefully positive way in response to the situation. final point, and i think this is something that does not apply only to the u.k. and the european union, and the euro think those, and i are the questions that will come to the front, not just in the u.k., that why is it that the populist voices, sometimes based on so-called truth that they now
have to retract? why is it that those voices carry a lot more and a lot further than the voices of largelywho are unanimous about the outcome and the consequences of the decision? the big question. is it an issue of the economic outcome? is it an issue of the democratic process? communication channels? all of those questions are on the table and warrant everyone's attention. >> there is another dimension to that. i know you are all junkies so you know this area have studied how the vote went. millennials by a large amount voted to remain. thatis a summary of a post many of you have probably seen what has gone viral by someone named nicholas. he said the brexit vote is three tragedies.
a working-class will be hurt the most. the younger generation will have never known the full extent of lost opportunities -- freedom of movement was taken away by our parents, uncles, and grandparents in a blow to a generation already drowning in the debts of our predecessors. and the third point is that we now live in a post fractional democracy. he asked -- when was the last time that a prevailing culture of anti-intellectualism led to anything but bigotry? after you absorb that -- [applause] there is a lot of buyers remorse out there. 3.5 million people have signed a petition to have another referendum. given the fact that the formal exit has not been triggered, is there any chance that -- can't you take a joke?
will be operative? [laughter] lagarde: it is really the sleepyculate but lawyer wakes up inside myself -- >> my lawyer is still asleep. you couldlagarde: in an advisory capacity and with the general uncertainty about the timeline, the triggering point, about the two-year timeframe in which negotiations must be conducted -- there is room for revision. but i don't see it personally. i don't want to be quoted on that because it is very much up in the air. and it is, by the way, for the u.k., it is for them to decide
themselves. that is the only country that can trigger the mechanism. no matter how much the eu leaders insist on it being conducted very diligently, it is the u.k. that can trigger the article 50. >> let me ask you about leadership in the context of rights it. you mentioned a need for a steady hand. the world post, part of the huffington post, wrote yesterday that there are only two compelling leaders in the world. yo pope and gil gil ma -- yo ma. [laughter] secondrtial to the because he is a dear friend. who could lead europe through this? angela merkel comes to mind. and so do you.
[laughter] christine lagarde: angela merkel comes to my mind, for sure. [laughter] , --ink on this of cohesion location, it is going to require concerted effort on the part of many. it is not going to be, and i don't and it ever could be, one single leader who tries it all. to be theulti-faceted work of one single person. whoever will be driving that bus will need to have all of the passengers on board in order to move forward. europe is an incredible construction. muccriticized. much too slow, very laborious on occasions that it is also an extraordinary achievement of the immediate aftermath of the second world war where countries
had been at each other's throats and millions of people have died at the hands of each other for centuries. they decided in the name of peace and prosperity that we would establish a free market services, products, and people could move. it should not be wasted. resilienta construction and a resilient territory which is unfinished and needs to be completed. it is facing a lot of hardship. if you combine the legacy of the financial crisis which is still out there in some corners, you look at the terrorist attacks which it has been the victim of in the last year and a half, you look at the refugee inflow, arriving on the shores of many of the southern countries and moving up all the way to sweden, and if you now take this first whenattempt to withdraw the whole process was about integration. it is a lot to take for a
construction that was not inherited from the west failure of treaty but was something that only the second world war construction. phalia treaty but was something that only the second world war constructed. you mentioned terrorism and that is my last brexit question. to quote gerry ford that we have to be able to walk and chew gum at the same time. as people are preoccupied with this, and everyone should be in europe and i think no matter what donald trump says, i think it is a great matter of the united states as well, there are pre-positioned foreign fighters in europe and there is vladimir putin up north who has already made excursions into the ukraine and many nato countries fear
what else he might do. this,europe is focused on with this unfortunately be a good opportunity that some of those folks might see attention is being focused elsewhere to create mischief? christine lagarde: i pray that is not the case. i really do. there is a great level of integration at the economic level that needs to be completed. in terms of security, there has to be further work and more in-depth work to be done within the european union. >> christine, turning to some other subjects. you were recently in japan for a meeting of the g7. every time i checked because i and iese texts from you invite you to dinner but you are going somewhere. on have been focusing i know ukraine, iraq, egypt.
endemic corruption is a huge concern of yours. just a word on the other things you are doing while you are also in this position managing the brexit crisis. christine lagarde: thank you for asking me that question. i have to look at the future. and look as positively as i can. triedfirst few years, i to work together with the management team in a direction that was a bit unconventional and not orthodox. we have really focused on some alternative topics including the likes of climate change, what do we do about it? the empowerment of women, what we do about it? financial inclusion. and what inequality
impact it has on growth. those are areas that matter in norma's late not only for macroeconomic purposes, not just to have a good and solid set of fiscal principles, but also because they actually bring the more security, more inclusion, less inequality that repairs or supports and the societies. this is particularly relevant at this point and time. some of the answers, some of the analysis in relation to these topics are critical for people. i do not think that we have communicated well enough or clearly enough leaving aside the jargon that economists and others use. continue to push the institution in that direction. our focus is the economy.
our focus is stability. those are the basic principles on which societies can prosper and be developed. but it can only be done on solid pillars. with the principle of inclusion being first and foremost. it is with that concern in mind, that i believe the work we have begun doing on corruption is very important. much corruption there is in between $1.5ywhere trillion and $2 trillion. how many countries are concerned? many. not just the odd country down south. who are the victims? generally, the most exposed people. can it be fixed? yes. will it take time? yes. will it require cohesion and leadership? of course. will it need careful analysis
and hollis the advice? -- and policy advice? absolutely. you don't get to transparency and accountability without some transition. those are areas i would like to push along with exceptional quality of research and service to the membership. >> my final question is -- growing up in france, where you were a synchronized swimmer, and going to the united states it an intern and being for phil -- cohen. and then your teaching and long career, did you ever imagine you would be here now? christine lagarde: absolutely not. nor did i plan for that, ever.
is --aren't wey glad that she is there? [applause] questions. one i would like to call on kitty -- whether she wants to be called on or not. kitty has come up with a great idea about greece. christine lagarde: i will take any of those. [laughter] >> i and now mortified. here is my idea. does this make sense? the greek economy is a disaster. the debt now is a huge question. radio for the olympics -- rio for the olympic games is a disaster. the ioc is really complicated.
could we please permanently install the olympic games in their home in athens and give the economy, and tourism, and strength and have one place that is environmentally safe? can we help greece and the world find a place in europe that is a legitimate home for the olympic games? erik: you have been watching a conversation between christine and jane harman at the aspen ideas festival in aspen, colorado. christine lagarde initially took questions about her exit and says it is very difficult to know where things are going because there is so much uncertainty about the immediate future. whether the u.k. will trigger article 50. how the european leaders will respond. we will get a better sense of that over the next couple of days. angelanch president and
merkel are meeting at the moment and the eu leaders will be meeting on tuesday. while this was happening, we were showing you financial markets. u.s. futures have begun trading. the exchange in new zealand has opened. we have more detail. some indication on this second day and what is going on. here are the futures in the u.s. we continue to see declines of these prices. about .5%.ures down dow futures are down about .5% as well. follow one selling to what we saw on friday. i have seen some research that this is not a typical but when you see a selloff as deep as it was on friday, especially on a friday, it is not unusual to have some continued selling happen on the following monday.
in terms of what else is open at this point, we are watching new zealand. that market has also opened up. we are seeing more steep declines, about 1% for the benchmark new zealand 50 index. down about 68.5 points at the moment though i believe that is delay pricing. i don't know if we have an update. in addition to that, we have been watching the currencies trade. we continue to see sellinin sterling after the record drop that we saw in friday's session. if we could look at the british pound versus the dollar. apparently, we do not have that. you can call that up on the bloomberg terminal. a decline in the pound of about 1.6%. a further decline in the pound. we have seen continued buying of the japanese yen as investors places in this
environment. we are still seeing continued selling. it seems as though it was not exhausted on friday. sometimes, you have this kind of selling on high volume and it is a capitulation and you don't see follow-through. and it is very early but it does look like there is still risk aversion to be burned off in this market. erik: the referendum was not the end. it was just the beginning. as we found out over the course of the weekend with the labor party and the u.k. beginning to implode with no clear successor to david cameron as the head of the conservative party. those are just two of the uncertain elements that investors are having to digest. process has not yet begun for the u.k. to figure out its plan of separation from the
european union. article 50 has to be invoked for that process to begin. i have seen a lot of investors waiting for that article 50 two go ahead. erik: one point worth making. not panic. it was an orderly decline. ,e have seen disorderly markets for example, almost a year ago after the chinese started messing out with the rules in their stock market, or august 24 which was a near disaster for many investors given all of the and thein the etfs trouble with the market to open. and what happened in january and february. in comparison, as you pointed out, a lot of people lost a lot of money that it was an orderly decline. julie: one of the reasons for that is the bank of england, even though it was broadly
expected that the leave vote would win, the bank of england did come up with a scenario built in. also, in contrast with the post-lehman timeframe, we have where as we did not necessarily have that in the financial crisis. erik: we will be coming back to you. to reiterate, futures have opened here in the u.s. they are trading down at about .5% and new zealand stocks are 1%. about outspoken mark cuban has an opinion on just about everything. as you would imagine, it includes brexit. up withnson caught cuban who in addition to being a savvy investor is the owner of the dallas mavericks. he is also famous for shark tank.
they spoke in los angeles today and here is cuban's take on this historic vote. mark cuban: absolute uncertainty and that is what the market hates. we are in a very manipulative situation. there is the political aspects on both sides of the ocean and how corporations deal with those circumstances are going to influence what happens going forward in the u.k. and also here in our election. if all of a sudden, we see jp morgan and all of these different financial companies, and they say -- we are moving everyone to berlin. now, there is a tangible impact on jobs and that will influence the conversation. it is the same in the u.s. we are talking about nationalism and donald trump versus senator clinton. if all of these businesses are "take back ours
country" movement and start leaving, that sets a tone for the election as well. why would it be different here? on the flip side, if the u.s. is open and we adhere to our treaties, then all of a sudden, tech companies in particular in the u.k. who want to be able to work with the european union and they have the treaties already in place, they might come here. if you see a big movie -- a big movement of tech companies here because there is no better tech foundation than in the united states, we may see a wholesale inflow of those countries. for the u.k., that says it would be a big mistake, and it sends a message to our economy that protectionism and cutting off the treaties would be a huge mistake. johnson: nationalism is a
big part of tdiscussion led by donald trump. immigration takes a lot of different forms. there are people concerned about their lives and their jobs. i am not a fan of donald trump's approach. i am a tech guy. i have invested in companies that create the ability to test and even people before they, in -- before they come in.\ before you come into this country, we will put you through a test and we will ask you a series of questions. we can tell with a high degree of accuracy whether or not you will have a negative impact or if you are a terrorist or if you are a radical islamic terrorist. there is technology that everyone is ignoring. i would take a completely different approach. cory johnson: are you concerned with the tone? mark cuban: it is scary.
hate never accomplishes anything. i think that is the fundamental problem. hate does not solve problems. notoes not suit -- it does improve the economy. it does not protect our people or the borders. we are got to be very careful about the verbiage we use. there is no win there. that was mark cuban speaking to cory johnson in los angeles earlier today. back, more of our special coverage of the aftermath of the brexit. there is news the bank of japan may be talking with the japanese government about the financial markets. we will keep you up-to-date on u.s. futures. they have opened for trade as have stocks in new zealand. we will bring you the investment giants fidelity's view in the wake of brexit. stay tuned.
to ourelcome back special coverage. i am erik schatzker here in new york city. our job right now is to help you understand what to expect from financial markets. for economic growth around the world. to help us do that, we are speaking with the director of global investments at fidelity. thank you for joining us. we know now that markets were improperly priced heading into thursday's historic brexit vote given the reaction in the pound, in u.s. equity markets and in stocks around the world. has it in fully priced in?
>> this is a shock to the system although i should point out that the markets are really only back to where they were a week earlier when there was an increasing possibility of a brexit starting to get priced in. the betting markets went one way and the polls went 10 the. we were a week ago. it really depends on whether this is a systemic event. it is a very important event but if it is a one off, then maybe the damage is somewhat limited. if this is part of a larger trend or a larger referendum against globalization, then i think probably the market needs to get rerated a little bit because if globalization has peaked and we are starting to see a trend towards de-globalization you could argue
that it is negative for growth and bullish for inflation. erik: what do you think? is it a one-off? when you look at the u.s. political situation, when you look at the political movements in continental europe, there clearly is a larger movement underway. the way i look at it is that is the -- it is a backlash. imbalances like to much wealth or inequality and growth is strong, you can paper over those problems to some degree. when that disagrees, these issues rise to the surface. the u.k. is one of the are in a larger campaign. ihink probably this is a larger pattern. heading- if we are
towards that kind of environment with less growth and higher multiple where a the s&p is trading is probably a little high and maybe we should be at a 15 multiple. people are having a tough time figuring out how to value assets right now. if you look at the wake of the brexit and what we are talking about in terms of longer-term, is there anything that looks better on an absolute or a relative basis other than safe havens such as treasuries? that issset class pricing in extremely low is the inflation breakeven markets. if we are going to have more years,on over the coming and this would be a very
gradual, slow moving trench, if you look at the five-year spread, it is in the low ones and that is probably pretty attractive valuation for that particular segment of the market. some form of inflation protection which certainly is relatively attractive right now given that inflation is the last thing anyone is worried about is some low hanging fruit. erik: christine lagarde of the imf noted that she thought it that there was no panic in financial markets on friday. would you agree with that? >> yes. had a very where we acute funding crisis, a liquidity crisis, we do not have a funding crisis right now. the central banks are very accommodated -- are very accommodating. you can see what they did in
terms of putting odds on future fed's. the odds for this december is equal to odds of a rate cut. touming the fed continues pay heed to the market, on the liquidity and the funding side, things are pretty good. when you remove that force selling, that forced margin selling, then things get more orderly. i do not see why this shouldn't ing of therly rerat global economic outlook. rerating is probably what is in store. coming up here on bloomberg television, more of our special coverage -- the aftermath of the brexit. stay with us. ♪
i am erik schatzker here in new york city. asian policymakers are beginning to react to the challenges posed by brexit. we were expecting this but all of the bigwigs from the prime minister to the bank of will beputy governors meeting to hold a joint emergency meeting on the markets. about five in minutes. 8:00 a.m. in tokyo. we will be watching out to see if any intervention measures will be announced. over the weekend, there was a report suggesting that they are looking at a unilateral measure, or the preferred option, having a coordinated g-7 theonse to the movement on
currency markets. also in south korea, they are considering market stabilization measures. we are seeing this chaos across most asian currencies. erik: thank you very much for that update. they are getting ready in asia to respond to these challenges posed by the brexit. , stay with bloomberg television for continuing coverage of the brexit fallout. this is the only place you will find this, 24 hours a day. the coverage continues. asia daybreak is next. ♪